The real estate sector is rocking

Raja Awasthi, TNNNov 28, 2004, 12.36am IST

The real estate sector is fast changing gears in the positive direction. In several ways, the real estate has changed for the better over the last five to seven years. Let's look at what are these positive changes, what are the key factors driving these changes and what needs to be done yet.

Greater transparency

The most remarkable change within the real estate market is the shift towards greater transparency. Time was when the cheque had checked out and transparency was taboo in the property market. In fact, buying a house necessarily entailed making dual payment — the white money involving payment through the legal channel (cheque, draft etc) and the black component — the shelling out of undisclosed money, which was all unaccounted — to the seller, buyer and the authorities.

Today, developers sell projects at firm prices and there is very little chance of prices being escalated in the final stages of completion, or levying hidden charges. There is also far greater transparency regarding the specifications of projects.

Says T Chakrabarti, head, India Property Research: "More and more builders today develop model flats at the site which the customers get to see during their on-site visit. Increasingly, these days what he sees is what he finally gets." Since more houses are purchased through housing finance, more transactions are in white. The role of black money in the sector is getting marginal with each passing day."

Quality is up

There doesn't seem to be cut-off here.The sheer quality of specifications within the homes being constructed today is up. What was considered a luxury earlier — modular kitchens with granite tops and chimneys, POP and paint (oil or plastic), marble flooring, even shower stalls in bathrooms — have become routine features now.